Question

Circumstances that create doubts about the ability of a CPA to act with integrity, objectivity, or professional skepticism raise questions with respect to independence in ___ A) auditing

B) tax services
C) consulting
D) valuation engagements

Answer 1

Doubts about a CPA's ability to act with integrity, objectivity, or professional skepticism pertain to their independence in auditing. Independence is essential to ensure the reliability of financial statements and maintain public trust in the financial reporting process.

Step-by-step explanation:

The circumstances that create doubts about the ability of a CPA to act with integrity, objectivity, or professional skepticism indeed raise questions with respect to independence in A) auditing. Auditing standards require that CPAs maintain independence in both mind and appearance when conducting an audit. Without independence, the auditor's opinion could be biased, and the reliability of the financial statements could be compromised. This concept is a fundamental principle in the accounting profession and is essential for maintaining public trust in the financial reporting process.